Why Vietnamese Startups Should Set Up a Holding Company in Singapore

Introduction

Vietnam’s startup ecosystem has been booming over the past decade. With a young, tech-savvy population, strong digital adoption, and growing investor interest, Vietnam has emerged as one of Southeast Asia’s most dynamic startup hubs. From fintech to e-commerce, healthtech to logistics, Vietnamese startups are making headlines both locally and regionally.

However, when it comes to scaling beyond Vietnam, attracting international investors, and safeguarding intellectual property, many startups encounter structural challenges. This is why setting up a holding company in Singapore has become a common and highly recommended strategy. Singapore is known globally for its pro-business environment, strong legal framework, and financial credibility. For Vietnamese startups aiming to expand regionally or globally, it provides an ideal platform.

This article explores in detail why Vietnamese startups should consider incorporating a holding company in Singapore and how it can benefit their long-term growth.

1. Access to International Investors

One of the biggest hurdles for Vietnamese startups is attracting global capital. Many foreign venture capitalists, private equity firms, and angel investors hesitate to invest directly in Vietnamese entities due to regulatory uncertainty and less predictable corporate governance frameworks.

A Singapore holding company solves this problem:

• Investor confidence: Investors are far more comfortable dealing with Singapore companies, which operate under transparent legal standards.

• Simplified investment process: Standardized shareholding structures, convertible notes, and other financial instruments are easier to execute in Singapore.

• Exit strategies: Whether through mergers, acquisitions, or IPOs, exits are much easier to structure through a Singapore entity.

For startups in fintech, SaaS, and deep tech, where international funding is essential, Singapore acts as a magnet for capital.

2. Protection of Intellectual Property (IP)

For many startups, intellectual property is their most valuable asset. Whether it’s software code, patents, or proprietary algorithms, protecting IP is crucial for long-term growth and investor trust.

Vietnam’s IP protection system, though improving, still lags behind global standards. Singapore, by contrast, is recognized worldwide for its strong IP protection framework. By registering their IP under a Singapore holding company, Vietnamese startups can:

• Ensure legal protection against infringement.

• License their IP to subsidiaries operating in Vietnam or other countries.

• Enhance valuation during fundraising rounds.

This IP security is often a critical requirement for international investors before they commit funds.

3. Favorable Tax Regime

Startups need every dollar to fuel growth. Singapore’s tax regime offers significant advantages compared to many other jurisdictions:

• Corporate tax rate capped at 17%, with exemptions and rebates that reduce effective rates for small businesses.

• No capital gains tax, making it easier to sell assets or shares in the future.

• No withholding tax on dividends, so founders and investors can receive payouts efficiently.

• Double Taxation Agreements (DTAs) with more than 80 countries, reducing tax on cross-border transactions.

For Vietnamese startups, this means they can structure operations in a way that minimizes unnecessary tax burdens and maximizes reinvestment into scaling.

4. Credibility in Global Markets

Reputation matters, especially when a young startup is pitching to international partners, clients, or investors. A company incorporated in Singapore immediately enjoys higher credibility compared to one incorporated solely in Vietnam.

Global corporations, banks, and potential clients are more likely to engage with a Singapore-registered entity because:

• Singapore is associated with transparency, efficiency, and good governance.

• Contracts signed under Singapore law are recognized internationally.

• A Singapore holding company signals that the startup is serious about scaling globally.

For Vietnamese founders aiming to build cross-border partnerships, this credibility is invaluable.

5. Ease of Incorporation and Corporate Flexibility

Singapore is consistently ranked among the top countries for ease of doing business. Setting up a holding company is fast, efficient, and cost-effective.

Key advantages include:

• Incorporation completed within days.

• Minimum paid-up capital requirement of just SGD 1.

• Flexible shareholding structure accommodating multiple founders and investors.

• Availability of nominee director services for compliance.

Vietnamese startups can therefore focus on innovation and growth, while their Singapore entity provides a simple and reliable legal structure.

6. Strategic Location for Regional Expansion

ASEAN is one of the fastest-growing regions in the world, with a combined GDP of over USD 3 trillion and a population of 650 million. Singapore sits at the heart of this region, making it an ideal base for startups planning regional expansion.

From Singapore, Vietnamese startups can:

• Manage subsidiaries across ASEAN efficiently.

• Access free trade agreements that Singapore has with global markets.

• Attract regional talent, partners, and customers.

Whether a startup is expanding into Indonesia, Thailand, or the Philippines, Singapore offers a central and well-connected hub.

7. Efficient Fundraising and Exit Options

Startups often need multiple rounds of funding—seed, Series A, Series B, and beyond. Investors prefer jurisdictions like Singapore because they offer well-established frameworks for:

• Shareholders’ agreements

• Employee stock option plans (ESOPs)

• Convertible notes and preferred shares

Furthermore, for exits through IPOs or acquisitions, a Singapore entity is far more attractive to international buyers than a Vietnamese one. This increases the startup’s chances of a successful and profitable exit.

8. Talent Attraction and Mobility

While Vietnam has a large pool of young and talented engineers, Singapore offers access to a wider regional and international talent pool. By having a holding company in Singapore, startups can:

• Easily hire regional executives and advisors.

• Bring in specialized talent through Singapore’s employment pass system.

• Position themselves as an international company to attract top talent.

This balance allows Vietnamese startups to keep their cost-effective operations in Vietnam while leveraging Singapore’s ability to attract global talent.

9. Better Governance and Corporate Structure

International investors place strong emphasis on governance and corporate transparency. Singapore provides well-established corporate laws that support startups in setting up governance frameworks.

Benefits include:

• Clearly defined shareholder rights.

• Legal protection for minority investors.

• Ease of conducting board meetings and passing resolutions.

This level of governance makes Singapore-based startups more appealing to institutional investors and venture capital funds.

10. Asset Protection and Risk Management

Startups face many risks, from market competition to legal disputes. By creating a Singapore holding company, Vietnamese founders can ring-fence valuable assets such as trademarks, software, or cash reserves.

This structure ensures that:

• If one subsidiary faces financial difficulties, the holding company can still protect overall assets.

• Legal disputes in one jurisdiction do not compromise global operations.

• Founders can separate ownership from day-to-day business risks.

It is a forward-looking strategy that safeguards the startup’s long-term interests.

11. Succession Planning for Founders

While most startups focus on growth, long-term succession planning is also important. A Singapore holding company makes it easier for founders to:

• Transfer ownership stakes to family members or successors.

• Set up trusts or foundations for wealth management.

• Ensure smoother transitions during leadership changes.

This provides founders with peace of mind that their legacy and hard work are preserved.

12. Synergy Between Vietnam and Singapore

Vietnam offers cost-effective production, strong tech talent, and a vibrant domestic market. Singapore provides legal stability, financial strength, and international reach. Together, they form a powerful combination for startups.

Examples include:

• A Vietnamese fintech startup keeping its development team in Hanoi while housing its holding company in Singapore to raise funds from U.S. investors.

• An e-commerce business operating fulfillment centers in Ho Chi Minh City while using its Singapore entity to negotiate global supplier contracts.

• A healthtech company securing IP protection in Singapore while piloting its services in Vietnam’s fast-growing healthcare market.

This dual structure maximizes strengths from both countries.

13. Government Support and Startup Ecosystem

Singapore’s government actively supports startups through grants, incubators, and accelerators. Agencies like Enterprise Singapore and the Economic Development Board (EDB) provide advisory and funding support for companies based in Singapore.

Vietnamese startups can plug into this ecosystem to access mentorship, government co-funding, and global networking opportunities. Being part of Singapore’s innovation hub adds prestige and resources to a young business.

Conclusion

Vietnamese startups are full of potential, driven by innovation, youthful energy, and strong domestic growth. But to truly scale globally, they need a platform that offers international credibility, investor confidence, tax efficiency, and legal stability. Singapore provides exactly that.

By setting up a holding company in Singapore, Vietnamese startups can:

• Protect their intellectual property.

• Attract global investors more easily.

• Expand across ASEAN and beyond.

• Build credibility with partners and clients.

• Structure long-term growth and exit strategies efficiently.

The Vietnam-Singapore combination—where Vietnam provides talent and operations while Singapore provides legal, financial, and international leverage—is one of the most powerful growth models available today.

For ambitious Vietnamese founders, a Singapore holding company is not just an option—it is a strategic necessity for scaling and succeeding on the global stage.